Garnet trio accused of operating cartel

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The competition watchdog has stepped up its campaign to stamp
out cartels, homing in on a group of companies that it has accused
of carving up the market for alluvial garnet.

The Australian Competition and Consumer Commission started legal
proceedings in the Federal Court in Melbourne yesterday against
three companies, Barton Mines Corp and Barton International Inc,
both of the United States, and Australian subsidiary Barton
International Australia.

In its statement of claim the ACCC accuses the companies of
striking a market-sharing deal, using their collective power to
carve up the market for purchasers of alluvial garnet in Australia
and elsewhere.

Alluvial garnet is used as an abrasive material in the
manufacture of pipes, as well as in ship building and other
applications.

The latest move follows a string of actions brought against
companies accused of engaging in cartel conduct, or colluding to
undermine competition, and strongly worded threats from the ACCC
chairman, Graeme Samuel, that cartel members will be pursued.

The ACCC declined to comment further and has not put a value on
the alleged cartel conduct. It is seeking a range of penalties
including injunctions, pecuniary penalties and its own legal
costs.

A representative of Barton International Australia could not be
reached for comment yesterday. The matter is expected to return to
court on April 8.